Mortgage – also known as liens against property. It is used by individuals or businessmen to purchase a real property without paying the entire value.

A debt instrument that is secured by the collateral of specified real estate property and that the borrower is obliged to pay back with a predetermined set of payments.

For example in a residential mortgage, a home buyer pledges his or her house to the bank. The bank has a claim on the house should the home buyer default on paying the mortgage. In the case of a foreclosure, the bank may evict the home’s tenants and sell the house, using the income from the sale to clear the mortgage debt.

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Related ChexSystems Banking Information:

1. Mortgage Banker
2. Loan Origination
3. Mortgage Broker
4. Lien
5. Net Income

Tagged as: Liens Against Property, Mortgage